Attempting to Avoid the Affordable Care Act’s Mandate by Reducing Hours Provokes ERISA Class Action Challenge

By: Edward A. Marshall

Submitted by Firm:
Arnall Golden Gregory LLP
Firm Contacts:
Edward Cadagin, Henry M. Perlowski, Teri A. Simmons
Article Type:
Legal Update

Employers nationwide are closely watching a class action lawsuit out of federal court in New York in which current and former employees have brought ERISA claims against restaurant chain Dave & Buster’s (“D&B”). In Marin v. Dave & Buster’s, Inc., S.D.N.Y., No. 1:15-cv-036081, the plaintiffs allege D&B reduced their hourly work schedules as part of a company-wide effort to avoid the costs of complying with the so-called “employer mandate” of the Affordable Care Act (“ACA”). Under the employer mandate, all employers with at least 50 full-time employees must offer qualifying health insurance to employees who work 30 or more hours per week. Please click here to read more.